European AI leaders join forces to push two-year pause on AI Act: All you need to know

A group of European business and tech leaders is urging the European Commission (EC) to delay the full rollout of the EU AI Act.

The announcement comes out of a concern that the new regulation could slow down growth, lead to inconsistent enforcement, and harm innovation in Europe.

“At a time of unprecedented technological, economic, and geopolitical change, Europe’s ability to lead in AI innovation and adoption will be critical to meet the competitiveness and sovereignty challenges so clearly identified by Mario Draghi – especially in our most established and strategic industries. Unfortunately, this balance is currently being disrupted by unclear, overlapping, and increasingly complex EU regulations. This puts Europe’s AI ambitions at risk, as it jeopardises not only the development of European champions, but also the ability of all industries to deploy AI at the scale required by global competition,” says the letter.

Starting in August, new rules for using AI will be rolled out in phases. CEOs are requesting a more innovation-friendly approach and a delay in the proposed legislation.

“This postponement, coupled with a commitment to prioritise regulatory quality over speed, would send innovators and investors around the world a strong signal that Europe is serious about its simplification and competitiveness agenda,” read the letter.

Urging for a two-year pause on AI Act

More than 45 signatories from the EU AI Champions Initiative, a coalition of over 120 European industrial leaders and AI innovators, have co-signed an open letter urging Brussels to implement a two-year pause on major obligations of the AI Act.

The letter, addressed to President von der Leyen and the European Commissioners, proposes a two-year “clock-stop” on key obligations of the AI Act, delaying enforcement until practical standards and implementation guidance are in place.

This delay would affect obligations for general-purpose AI models (GPAI) starting in August 2025 and for high-risk AI systems beginning in August 2026 and 2027, says the EU AI Champions Initiative.

This window should be used to simplify and align the digital regulatory landscape, particularly through the upcoming Digital Omnibus and Digital Fitness Check.

The two-year pause calls for strategic implementation to make sure that regulations protect essential values without stifling innovation or compromising industrial leadership.

“As representatives of European companies deeply committed to the European project and to the development of trustworthy, human-centric AI, which must, of course, be subject to simplified and practical regulation, we are convinced that Europe has a unique opportunity to lead in the global AI economy. That opportunity will only be realised if we act now and with determination and collaboration at its core,” concludes the letter.

The letter is signed by startups such as Black Forest Labs and Mistral, as well as established firms like Mercedes-Benz, Siemens Energy, and Lufthansa.